Department of Labor Rescinds 80/20 Tip Rule
Employers in the restaurant industry are probably familiar with the tip credit, which, in general terms, allows an employer to claim a “credit” between what it pays tipped employees and the minimum wage. The tips that such employees earn, and form the basis for the “credit,” are thought to make up for this gap. However, problems arise when tipped employees perform side work that is related, but not part of, the tipped work. For example,...
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